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Business News/ Markets / Stock Markets/  Market Strategy: Harshad Patil of Tata AIA suggests this approach for investors this year
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Market Strategy: Harshad Patil of Tata AIA suggests this approach for investors this year

With the 2024 general elections knocking at the door and the incumbent Modi government most likely to retain office for the third term, Harshad Patil, Chief Investment Officer, Tata AIA Life Insurance, advises investors to look at a bottom-up stock-picking approach going ahead.

Harshad Patil, Chief Investment Officer, Tata AIA Life Insurance Premium
Harshad Patil, Chief Investment Officer, Tata AIA Life Insurance

With the 2024 general elections knocking at the door and the incumbent Modi government most likely to retain office for the third term, Harshad Patil, Chief Investment Officer, Tata AIA Life Insurance, advises investors to look at a bottom-up stock-picking approach going ahead.

He sees opportunities across sectors that offer investment potential for long-term capital appreciation. With robust economic growth and market earnings seeing continued growth, Patil believes that the valuations despite being a tad elevated offer long-term growth opportunities. 

Edited Excerpts.

What themes should one explore in 2024?

The manufacturing space aided by government initiatives in the form of Production Linked Incentive (PLI) benefits offers long-term opportunities for investments. Also, we see new emerging avenues in select pockets around the consumption theme that can offer opportunities for a long-term investor.

Which sectors would you advise investing in this year?

While the Tata AIA investment team would look at bottom-up stock picking, we see opportunities across sectors that offer investment potential for long-term capital appreciation. As mentioned earlier, the manufacturing sector offers investment opportunities. Also, select pockets of the consumption sector have significant opportunities for long-term growth.

Read here: 'Remain invested in stocks; quality smallcaps will yield lucrative returns'

How has Atmanirbhar Bharat contributed to the growth story of Indian market?

The ‘Make in India’ initiatives, PLI schemes, or significant moves towards increasing formalisation, have all been key enablers in making India amongst the fastest growing top-10 global economies. The strength of the domestic economy, despite the slowdown in many large global economies and geo-political conflicts, has stood out in sharp contrast.

Do you believe the valuations of Nifty are expensive or is there more room for elevation?

The valuations of the overall market usually track the earnings growth and macro-economic stability. With robust economic growth and market earnings seeing continued growth, we believe that the valuations despite being a tad elevated offer long-term growth opportunities.

Tata AIA is launching a new NFO in March. What is it about?

The Rising India Fund is the new fund offering being launched by Tata AIA Life. The fund aims to invest in the sectors which would benefit from the robust economic growth of India. Moreover, we are of the view that the rising stars would keep emerging in the investment landscape over the years on the back of the rise in the Indian economy.

Read here: Minor correction expected in markets before 2024 elections, says Trivesh D

Why do you think investors should invest in TATA AIA NFO?

The Rising India Fund expects to add value to the investors in meeting their long-term financial goals from long-term capital appreciation through investments in companies that are shaping the growth of India. The investments will be across sectors and market capitalisation spectrum in stocks that offer long-term growth potential at reasonable valuations.

One piece of advice for new investors?

We would urge new investor to invest as early as possible to start their investment journey and benefit from the power of long-term compounding investment returns as time in the market is more important than trying to time the market. Also, periodic long-term investments help average out market volatility and smoothen out long-term returns. Having said that, we believe that the asset allocation of the investor should be in line with their risk appetite so that their investment journey is pleasant over the years. We offer a range of equity, hybrid and debt funds, for aggressive as well as relatively conservative investors to choose from.

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 04 Mar 2024, 01:48 PM IST
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